November 12, 2008

HONG KONG, Nov. 12 /PRNewswire-FirstCall/ -- KHD Humboldt Wedag International Ltd. today announced results for the third quarter and nine months ended September 30, 2008. Unless otherwise noted, all figures are in U.S. dollars.

For the nine months ended September 30, 2008, KHD reported revenues from continuing operations of $474.7 million and income from continuing operations for the period was $57.9 million or $1.89 per share diluted, an EPS increase of 51 percent over the $38.1 million or $1.25 per share for the first nine months of 2007. Although the results for the quarter and year-to-date were strong, it is clear that the international financial conditions that have surfaced in recent weeks will require us to look at options to best adapt to these market changes.

Revenues for the quarter ended September 30, 2008, were $193.6 million, an increase of 29% over 2007 third-quarter revenues of $150.4 million. Income from continuing operations for the period was $30.8 million or $1.01 per share diluted, an EPS increase of 58 percent over the $19.7 million or $0.64 per share for the third quarter of 2007. Net income for the quarter ended September 30, 2008 included an after tax foreign exchange gain of $6.6 million on the $100 million of cash currency held in certain of our European subsidiaries in U.S. dollars that was converted to Euros in the third quarter.

At September 30, 2008, the Company had $408.4 million in cash, cash equivalents, short term cash deposits and short term securities; a current working capital ratio of 1.72. Shareholders' equity rose to $351.6 million and a long term debt to equity ratio of 0.04.

Order intake for the nine months ended September 30, 2008 was $689.9 million, an increase of 28 percent over the first nine months of 2007. Of this amount, 53 percent came from the emerging Russia/Eastern Europe region, 27 percent from the emerging Asian region and 13 percent from the Middle East region.

Order intake for the quarter ended September 30, 2008 was $81 million, a decrease of 65 percent from the third quarter of 2007. Of this amount, 55 percent came from the Middle East region and 23 percent from the emerging Russia/Eastern Europe region. The decrease in order intake for the third quarter was primarily a result of delays in project awards by customers revisiting their financing alternatives in light of credit market dynamics.

Order backlog as of September 30, 2008 was $1.1 billion, up 39 percent over the same period of 2007. The majority of the order backlog is in the world's emerging economies: 39 percent in Russia/Eastern Europe, 27 percent in Asia and 26 percent in the Middle East.

CEO Jim Busche commented, "KHD has focused its expansion activities in growth markets that have the greatest infrastructure demands. These markets are Asia, Russia/Eastern Europe and the Middle East. KHD has achieved a significant position in each with over 90 percent of our backlog at September 30, 2008, $1.1 billion dollars, originating from these three regions.

"The changing economic climate requires a change in KHD's focus from growth to sustaining equity during this period of uncertainty and positioning KHD to effectively capitalize on opportunities that become available as conditions improve.

"KHD's primary business is selling capital equipment to cement producers. There is little doubt that the shortage of credit will impact the international construction market. We expect the recent trends of demand growth, consolidation and capital expenditures in the cement industry to moderate. Many of our customers are facing liquidity problems. Some have approached us to discuss renegotiating contracts. We are closely monitoring market communications concerning our customers. Some are revisiting their capital expenditure plans by assessing the impacts of the tight credit markets, assuming demand for product will be penalized, and weighing the decrease in freight rates vis-a-vis import options. While the extent of their reductions in capital expenditures is not yet known, it is clear that we should expect some projects to be delayed, others cancelled and a decrease in the number of project opportunities."

CEO Jim Busche continued, "KHD is currently evaluating alternatives to adapt to these changing market conditions and will develop a plan to minimize costs and maximize profitability, preserve shareholder value and take an optimum position to capitalize on opportunities that become available as conditions recover. It is our intention to finalize a plan, obtain Board approval and have it implemented by the beginning of 2009.

"As a result of the rapid and dramatic changes in world credit markets and the associated impact on our customer base, despite our strong financial performance through three quarters, we are not in a position at this time to confirm our guidance on earnings and order intake for 2008 which we gave in our April 2, 2008 news release."

CFO Alan Hartslief commented, "We will continue to target opportunities where we judge the returns to be reasonable and the risks to be controllable. This balanced approach to business opportunities has resulted in improving gross profit margins and has allowed us to maintain a balance sheet with low debt and high levels of liquidity. For the nine-month period ended September 30, 2008, the gross profit margin was 19 percent compared to 14 percent for the same period in 2007 and was 19 percent compared to 14 percent for the three-month periods ended September 30, 2008 and 2007, respectively. Our royalty stream from the Wabush iron ore mine continues to provide strong positive cash flow."

We encourage our shareholders to read the entire Form 6-K, which has been filed with SEC, for a greater understanding of our company. The Form 6-K is also available on the Company website.

The Company's annual report for the fiscal year ended December 31, 2007 on Form 20-F was filed with the Securities and Exchange Commission (SEC) on March 31, 2008. The Company will provide a hard copy of the Company's complete audited financial statements included in the annual report, free of charge upon request. Requests can be sent by mail to: KHD Humboldt Wedag International Ltd., Suite 702, 7th Floor, Ruttonjee House, Ruttonjee Centre, 11 Duddell Street, Central, Hong Kong SAR, China.

Today at 10:00am EDT (7:00am PDT), a conference call will be held to review the Company's results; this call will be broadcast live over the Internet at http://www.khdhumboldt.com/ or http://www.earnings.com/. An online archive will be available immediately following the call and continue for seven days or to listen to the audio replay by phone, dial: 1 (888) 286 8010 using conference ID # 53894928. International callers should dial: 1 (617) 801 6888.

About KHD Humboldt Wedag International Ltd.

KHD Humboldt Wedag International Ltd. owns companies that operate internationally in the industrial plant engineering and equipment supply industry, and specializes in the cement, coal and minerals processing industries. To obtain further information on the Company, please visit our website at http://www.khdhumboldt.com/

Disclaimer for Forward-Looking Information

Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's future growth, results of operations, performance and business prospects and opportunities. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain assumptions. These assumptions, which include management's current expectations, estimates and assumptions about certain projects and the markets the Company operates in, are expressed or implied by the forward-looking statements, including, but not limited to: (1) a downturn in general economic conditions in Russia, Asia, Europe, the United States and internationally, including the worldwide economic downturn resulting from the effects of the sub-prime lending and general market causes, volatile energy costs, decreasing consumer confidence and other factors, (2) a decreased demand for the Company's products, (3) a decrease in the demand for cement, minerals and related products, (4) the number of competitors with competitively priced products and services, (5) product development or other initiatives by the Company's competitors, (6) shifts in industry capacity, (7) fluctuations in foreign exchange and interest rates, (8) fluctuations in availability and cost of raw materials or energy, (9) delays in the start of projects included in our forecasts, (10) delays in the implementation of projects included in our forecasts and disputes regarding the performance of our services, (11) the uncertainty of government regulation and politics in Russia, Asia and the Middle East and other markets, (12) potential negative financial impact from regulatory investigations, claims, lawsuits and other legal proceedings and challenges, and (13) other factors beyond the Company's control. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks and Uncertainties" section in our Form 6-K filed with the Securities and Exchange Commission and our MD&A filed with Canadian security regulators.